Why is the Coefficient of Dispersion important in property assessments?

The Coefficient of Dispersion (COD) is a statistical measure that specifically focuses on the uniformity of property assessments. It measures how closely the assessed values of properties in a particular area align with their market values, reflecting the consistency and equity of property assessments across various properties.

When the COD is low, it indicates that property assessments are relatively uniform and equitable, meaning that similar properties are being assessed at similar rates. This is crucial in maintaining fairness in the property tax system, as it ensures that no particular group of property owners is unduly burdened compared to others.

The other options do not directly relate to the primary function of the COD. Tax rates are determined by taxing authorities based on various factors, but not directly by the COD itself. Evaluating property sizes is a separate aspect of appraisal not directly affected by COD. Finally, while revenue projections are important for budgeting and funding, they are not the primary purpose of measuring the uniformity of property assessments as represented by the COD.

Therefore, the correct choice, B, encompasses the critical role of the Coefficient of Dispersion in ensuring fair and equitable property assessments.